Tobarra González, Miguel Ángel Castro Valdivia, Juan Patricio
Year of Publication:
[Journal:] Atlantic Review of Economics [ISSN:] 2174-3835 [Publisher:] Colegio de Economistas [Place:] La Coruña [Volume:] 2 [Year:] 2011 [Pages:] 1-17
In this article, premium risk concept is used to value the cost of water uncertainty for a risk adverse farmer in the Segura Basin. The obtained estimation would proportionate the increment in the willingness to pay for a more secure resource. This calculus can be taken into account by authorities by deciding the construction of determined hydraulic infrastructure. It can be also useful for insurance companies because water variability can be a component of an agrarian insurance.